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The KfW (Public Credit Institute for Reconstruction) funding programme for energy-efficient construction and refurbishment is resumed – the Bundestag Budget Committee releases 9.5 billion euros

On 16 Feburary 2022, the Budget Committee of the Bundestag approved a further 9.5 billion euros for the Federal Promotion for Efficient Buildings to promote energy-efficient new buildings and refurbishments. The KfW funding programme was stopped early on 24 January 2022 and, according to media reports, will be resumed from 21 February 2022. After approval by the Federal Ministry of Finance, the money can be granted.

On 24 January 2022, the Ministry of Economic Affairs and Climate Protection announced the programme stop of KfW’s Federal Support for Efficient Buildings (BEG) with immediate effect. This meant that construction funding for new efficient housesor buildings (EH55 and EH40 standards, consuming 55% and 40% less than a reference house), was discontinued.

“Efficiency house” is an energy standard for buildings, which is composed of the level of the total energy demand of the building and the quality of the building insulation. For “energy-efficient buildings”, the benchmark is an efficiency house level. The lower the key figure of the rating, the less energy the building consumes. Energy efficiency and the use of renewable energy technologies in new buildings and renovations is an essential component of the energy transition and climate protection. Anyone who achieves an efficiency house level of “40 Plus”, 40 or 55 when constructing or refurbishing an existing building can receive KfW funding for this reason.

The premature discontinuation of the KfW funding programme led to strong protests from the construction industry. On 16 February 2022, the Budget Committee of the Bundestag approved additional funds to enable the applications for the programme that had been received up to the time of the stop. The approved funding of 9.5 billion euros is so generous that funding can be resumed beyond this time limit.

The requirements for submitting a KfW-55 or KfW-40 application remain the same for the time being. However, it is unclear from when new applications will be reopened.

The Federal Ministry of Economics and Climate Protection is already working on new funding programmes for energy-efficient construction and renovation. According to reports from the meeting of the Bundestag’s Committee on Climate Protection and Energy, the Federal Economics and Climate Protection Minister, Robert Habeck, intends to introduce an “Easter package” to the Bundestag by mid-April, which will provide subsidies for KfW funding programmes for efficiency house level 40. The new funding programme is initially capped at one billion euros and is to be limited in time as well. The “Easter package” is to comprise about 20 new laws and is to start no later than 1 January 2023 as part of the “Climate-friendly Construction” Programme.

If you are interested in legal advice on the topic of new construction or refurbishment in the field of renewable energy law, or if you need support in applying for the KfW funding programmes, we are at your disposal and will be happy to advise you.